[The following information applies to the questions displayed below.] This year Jack intends to file a married-joint return. Jack received $174,000 of salary, and paid $9,900 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,900 and $32,400 of alimony to his ex-wife, Diane, who divorced him in 2012. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
a. What is Jack's adjusted gross income?
b. Suppose that Jack also reported income of
$13,050 from a half share of profits from a partnership. Disregard
any potential self-employment taxes on this income. What AGI would
Jack report under these circumstances?
All Calculation are done as per 2019
a.
|
Salary and gross income |
174,000 | |
| Less: Moving expenses | 0 | |
| Alimony Paid | - 32,400 | |
| Modified AGI | 141,600 | |
| Student loan interest deduction | - 2,367 | =2500-(2500/30,000)* (141,600-140,000) |
| Jack's AGI | 139,233 |
b.
|
Salary and gross income |
174,000 | |
| Partnership Income | 13,050 | |
| Less: Moving expenses | 0 | |
| Alimony Paid | - 32,400 | |
| Modified AGI | 154,650 | |
| Student loan interest deduction | - 1,279 | =2500-(2500/30,000)* (154,650-140,000) |
| Jack's AGI | 153,371 |
* From 2018 ex-wife moving expenses is suspended.
The phase-out ranges for the 2019 tax year depend on your filing status:
| Filing Status | Phase-out Begins | Phase-out Ends |
| Married Filing Jointly | $140,000 | $170,000 |
| Qualifying Widow(er) | $70,000 | $85,000 |
| Head of Household | $70,000 | $85,000 |
| Single | $70,000 | $85,000 |
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